Which of the following would not be a characteristic of a financial lease?
A) They are not usually fully amortized.
B) They usually do not have maintenance necessary for the leased assets.
C) They usually do not include a cancellation option.
D) The lessee usually has the right to renew the lease at expiration.
E) All of these are characteristics of financial leases.

Question

Quizplus · Accepted Answer

Financial leases are typically fully amortized, meaning the lease payments cover the entire cost of the asset over the lease term.

Which of the Following Would Not Be a Characteristic of a Financial